D50 . fx 8% H E G 1 A B D 40% Operating current liabilities Operating current liabilities + Fixed assets + 1 Key Input Data 2 Tax rate 3 4 Net operating working capital Operating current 5 2019 NOWC assets 2019 NOWC 7 2019 NOWC 8 Operating Current 9 2018 NOWC assets 10 2018 NOWC 11 2018 NOWC- 12 13 Total net operating capital 14 2019 TOC NOWC 15 2019 TOC - 16 2019 TOC 17 18 2018 TOC NOWC 19 2018 TOC 20 2018 TOC 21 22 Investment in total net operating capital 2019 24 2019. In TOC TOC 25 2019. In TOC 26 2019. in TOC 27 28 Net operating profit after taxes 29 2019 NOPAT EBIT 30 2019 NOPAT 31 2019 NOPAT = 32 33 Free cash flow 2019 FCF - NOPAT 35 2019 FCF 2019 FCF 32 38 Return on invested capital 39 2019 ROIC NOPAT 2019 ROIC 2019 ROIC Fixed assets + 2018 TOC X (1-T) Net investment in operating capital Total net operating capital 4. Identify the number of shares standing at the end of the year, the year and closing stock price per share, and assume that there cost of capital is % 45 Calculate EVA and MVA for the most recent year 47 Additional Input Data Balance Sheet Income Statement Cashflows FCF IS-Common Size BS-Con 34 Net investment in operating capital 2019 FCF = NOPAT 35 2019 FCF 36 2019 FCF = 37 38 Return on invested capital 39 2019 ROIC NOPAT 1 Total net operating capital 40 2019 ROIC = 41 2019 ROIC 42 43 44 b. Identify the number of shares outstanding at the end of the year, the year-end closing stock price per share, and assume that the after-tax cost of capital is 8%. 45 Calculate EVA and MVA for the most recent year. 46 47 Additional Input Data 48 Stock price per share 49 # of shares (in thousands) 50 Aftentax cost of capital 8.0% # of shares Total common equity 52 Market Value Added 53 MVA - Stock price 54 MVA = 55 MVA 56 MVA 57 58 Economic Value Added 59 EVA - NOPAT 60 EVA - 61 EVA = 62 EVA = (Operating Capital x After-tax cost of capital) X 64 65 66 67 68 69 70 71 72 73 74 75 76 77 to fx Millions $USD Evo F Lill 1 Millions $USD B D Fiscal Year Ended, YE 2017 YE 2018 YE 2019 2. 3 4 5 Operating Revenue Total Revenue 6 7 156,776 156,776 160,338 160,338 155,900 155,900 8 Cost of Revenue Gross Profit 9 131,321 25,455 136,269 24,069 134,693 21,207 10 11 12 13 Other General and Administrative Expenses General and Administrative Expense Selling, General and Administrative Expenses Other Operating Expense Total Operating Expense 14 15 16 11,527 9,047 20,574 11,403 9,463 20,866 11,161 9,472 20,633 17 Operating Income 4,881 3,203 574 18 19 20 21 22 461 1,190 (729) 700 1,228 (528) 23 Interest Income - Non-Operating Interest Expense - Non-Operating Net Non-Operating Interest Income (Expense) Other Special Charges Special Income (Charges) Gain on Sale of Security Earnings from Equity Interest Other Non-Operating Income (Expenses) Other Income (Expense) Income Before Tax 24 25 809 1,049 (240) 55 (55) 144 52 (1,115) (974) (640) (23) 1,215 2,815 4,007 8,159 26 115 165 1,390 1,670 4,345 27 28 29 30 Total Income Tax Income After Tax 31 402 7,757 650 3,695 (724) 84 32 33 34 Net Income from Continuing Operations Minority Interest Net Income 35 7,757 (26) 7,731 3,695 (18) 3,677 84 (37) 47 36 37 38 Net Income Available to Common Stockholders 7,731 3,677 47 + Income Statement CashFlows - Ford BS FCF - IS-Common Size Millions $USD to fix Eve D E F B Li 7,731 Net Income 3,677 47 35 36 37 7,731 3,677 47 Net Income Available to Common Stockholders 38 39 40 OOOO 41 42 44 45 46 47 48 49 50 51 52 Basic EPS Basic EPS from Continuing Operations Diluted EPS Diluted EPS from Continuing Operations Basic Average Shares Diluted Average Shares Interest Income Interest Expense Net Interest Income Net Income Including Non-Controlling Interests Net Income from Continuing and Discontinued Operations Normalized Income Basic EPS from Continuing & Discontinued Operations Diluted EPS from Continuing & Discontinued Operations Dividends per Share Net Income Before Extraord Items Total Unusual Items Total Unusual Items Excluding Goodwill Tax Rate Tax Effect of Unusual Items Basic Normalized EPS Diluted Normalized EPS EBITDA Normalized EBITDA Reconciled Cost of Revenue Reconciled Depreciation EBIT EBIT Nomarlized 53 2 2 2 2 3,975 3,998 461 1,190 (729) 7,757 7,731 7,753 2 2 1 7,731 (23) (23) 0 (1) 2 2 17,921 17,944 131,321 8,572 9,349 9,563 6.1% 1 1 1 1 3,974 3,998 700 1,228 (528) 3,695 3,677 3,579 1 1 1 3,677 115 115 0 17 1 1 13,986 13,871 136,269 8,413 5,573 7,000 4.4% 56 55 56 57 3,972 4,004 809 1,049 (240) 84 47 (18) 0 0 1 47 89 89 0 24 (0) (0) 8,899 8,810 134,693 8,490 409 6,400 From Ford 10-K 4.1% 58 59 60 61 62 63 64 65 66 67 68 69 70 71 Income Statement - Cash Flows Ford BS- FCF IS-Common Size - BS-Common Size D50 . fx 8% H E G 1 A B D 40% Operating current liabilities Operating current liabilities + Fixed assets + 1 Key Input Data 2 Tax rate 3 4 Net operating working capital Operating current 5 2019 NOWC assets 2019 NOWC 7 2019 NOWC 8 Operating Current 9 2018 NOWC assets 10 2018 NOWC 11 2018 NOWC- 12 13 Total net operating capital 14 2019 TOC NOWC 15 2019 TOC - 16 2019 TOC 17 18 2018 TOC NOWC 19 2018 TOC 20 2018 TOC 21 22 Investment in total net operating capital 2019 24 2019. In TOC TOC 25 2019. In TOC 26 2019. in TOC 27 28 Net operating profit after taxes 29 2019 NOPAT EBIT 30 2019 NOPAT 31 2019 NOPAT = 32 33 Free cash flow 2019 FCF - NOPAT 35 2019 FCF 2019 FCF 32 38 Return on invested capital 39 2019 ROIC NOPAT 2019 ROIC 2019 ROIC Fixed assets + 2018 TOC X (1-T) Net investment in operating capital Total net operating capital 4. Identify the number of shares standing at the end of the year, the year and closing stock price per share, and assume that there cost of capital is % 45 Calculate EVA and MVA for the most recent year 47 Additional Input Data Balance Sheet Income Statement Cashflows FCF IS-Common Size BS-Con 34 Net investment in operating capital 2019 FCF = NOPAT 35 2019 FCF 36 2019 FCF = 37 38 Return on invested capital 39 2019 ROIC NOPAT 1 Total net operating capital 40 2019 ROIC = 41 2019 ROIC 42 43 44 b. Identify the number of shares outstanding at the end of the year, the year-end closing stock price per share, and assume that the after-tax cost of capital is 8%. 45 Calculate EVA and MVA for the most recent year. 46 47 Additional Input Data 48 Stock price per share 49 # of shares (in thousands) 50 Aftentax cost of capital 8.0% # of shares Total common equity 52 Market Value Added 53 MVA - Stock price 54 MVA = 55 MVA 56 MVA 57 58 Economic Value Added 59 EVA - NOPAT 60 EVA - 61 EVA = 62 EVA = (Operating Capital x After-tax cost of capital) X 64 65 66 67 68 69 70 71 72 73 74 75 76 77 to fx Millions $USD Evo F Lill 1 Millions $USD B D Fiscal Year Ended, YE 2017 YE 2018 YE 2019 2. 3 4 5 Operating Revenue Total Revenue 6 7 156,776 156,776 160,338 160,338 155,900 155,900 8 Cost of Revenue Gross Profit 9 131,321 25,455 136,269 24,069 134,693 21,207 10 11 12 13 Other General and Administrative Expenses General and Administrative Expense Selling, General and Administrative Expenses Other Operating Expense Total Operating Expense 14 15 16 11,527 9,047 20,574 11,403 9,463 20,866 11,161 9,472 20,633 17 Operating Income 4,881 3,203 574 18 19 20 21 22 461 1,190 (729) 700 1,228 (528) 23 Interest Income - Non-Operating Interest Expense - Non-Operating Net Non-Operating Interest Income (Expense) Other Special Charges Special Income (Charges) Gain on Sale of Security Earnings from Equity Interest Other Non-Operating Income (Expenses) Other Income (Expense) Income Before Tax 24 25 809 1,049 (240) 55 (55) 144 52 (1,115) (974) (640) (23) 1,215 2,815 4,007 8,159 26 115 165 1,390 1,670 4,345 27 28 29 30 Total Income Tax Income After Tax 31 402 7,757 650 3,695 (724) 84 32 33 34 Net Income from Continuing Operations Minority Interest Net Income 35 7,757 (26) 7,731 3,695 (18) 3,677 84 (37) 47 36 37 38 Net Income Available to Common Stockholders 7,731 3,677 47 + Income Statement CashFlows - Ford BS FCF - IS-Common Size Millions $USD to fix Eve D E F B Li 7,731 Net Income 3,677 47 35 36 37 7,731 3,677 47 Net Income Available to Common Stockholders 38 39 40 OOOO 41 42 44 45 46 47 48 49 50 51 52 Basic EPS Basic EPS from Continuing Operations Diluted EPS Diluted EPS from Continuing Operations Basic Average Shares Diluted Average Shares Interest Income Interest Expense Net Interest Income Net Income Including Non-Controlling Interests Net Income from Continuing and Discontinued Operations Normalized Income Basic EPS from Continuing & Discontinued Operations Diluted EPS from Continuing & Discontinued Operations Dividends per Share Net Income Before Extraord Items Total Unusual Items Total Unusual Items Excluding Goodwill Tax Rate Tax Effect of Unusual Items Basic Normalized EPS Diluted Normalized EPS EBITDA Normalized EBITDA Reconciled Cost of Revenue Reconciled Depreciation EBIT EBIT Nomarlized 53 2 2 2 2 3,975 3,998 461 1,190 (729) 7,757 7,731 7,753 2 2 1 7,731 (23) (23) 0 (1) 2 2 17,921 17,944 131,321 8,572 9,349 9,563 6.1% 1 1 1 1 3,974 3,998 700 1,228 (528) 3,695 3,677 3,579 1 1 1 3,677 115 115 0 17 1 1 13,986 13,871 136,269 8,413 5,573 7,000 4.4% 56 55 56 57 3,972 4,004 809 1,049 (240) 84 47 (18) 0 0 1 47 89 89 0 24 (0) (0) 8,899 8,810 134,693 8,490 409 6,400 From Ford 10-K 4.1% 58 59 60 61 62 63 64 65 66 67 68 69 70 71 Income Statement - Cash Flows Ford BS- FCF IS-Common Size - BS-Common Size